patrick.net

I have discussed/argued about Intel's prospects and whether it was a smart investment, in the last Intel thread here on Pat.net. Now that we have 3-4 months of hindsight, there are two upcoming developments that I find VERY interesting within the Tablet and mobile DRAM industries...

Please remember that I submit the fine work of others: in this case, from two authors who wrote the following articles found in Seeking Alpha. These are VERY interesting reads,that are concise, and help the average investor wrap their brains around these industries...

1) Alpida/Micron being saved by Intel/Apple - Why? Read on...

2) A rumor-to-be-confirmed that Intel got a HUGE win w/ the upcoming Galaxy TAB 3.

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1) ALPIDA/MICRON SAVED BY INTEL/APPLE - QUID PRO QUO FOR APPLE/INTEL TO HELP APPLE MOVE AWAY FROM SAMSUNG

http://seekingalpha.com/article/1440381-micron-the-electronics-industry-just-dodged-a-bullet

....."May 16, 2012 Industry sources reveal that Apple (AAPL) has contracted with Elpida (still officially in bankruptcy) for mobile DRAM that represents half of the output of the Hiroshima fab. We need to pause and think about that for a minute. Apple essentially bet the company on a supplier of an essential product that was in bankruptcy proceedings."......

...."So, another month of paperwork and Elpida is saved from extinction and will be combined with Micron. Can there be any doubt that Micron, Apple and Intel cooperated in the operation to save Elpida?

Micron, overnight, becomes the world's second largest memory company. Actually Micron becomes the world's second largest processor of silicon wafers behind only Samsung. Since a great deal of Samsung's memory capacity is used to support their own internal requirements, Micron becomes the largest merchant market supplier of DRAM and, therefore, the swing player in the memory business."......

....."If fear of Samsung mobile DRAM blackmail has kept Apple from moving its "A" chip business to a less competitive supplier, as I think, it will be able to make that move now without fear of memory retribution by Samsung. The Apple business will move from Samsung. The debate over whether the business goes to Intel or TSMC (TSM) will soon be over. My bet, since Intel played a big role in saving Elpida, to Apple's distinct benefit, they will get the "A" chip business with or without the ARM (ARMH) cores.

This is a huge and important event and the fact that MU, INTC, and Apple cooperated to pull it off will never be found in a business article. Far less important subjects are analyzed to death by the business media. Not this one.".......

2) INTEL TO WIN GALAXY TAB 3 APPLICATION CHIP BUSINESS

http://seekingalpha.com/article/1445391-intel-wins-samsung-s-galaxy-tab

...."Thanks to a timely post from fellow InvestorsHub forum member, ideal_inv, I was pointed to some very juicy information regarding Samsung's (SSNLF.PK) upcoming Galaxy Tab 3, the Korean consumer electronics giant's premier 10" class tablet. Android Authority, a well-known source for Android device news, found some benchmarks in the GLBenchmark database that unequivocally pointed to Intel's (INTC) Atom Z2560 (the second-fastest version of Intel's "Clover Trail+" Atom) as the apps processor of choice for the device. This is a big deal as it busts even more myths regarding Intel's potential in this space.".....

...."With "Clover Trail+", Intel's dual core implementation is more than capable in CPU performance within a comparable power envelope to the ARM competition. Further, the implementation of Imagination Tech's SGX 544MP2 puts it in the same league as other modern high end SoCs in terms of GPU performance. Finally, it seems that compatibility issues are likely a thing of the past sans a few obscure applications, but I am confident that Intel is working closely with developers to make sure that the native applications get recompiled to work nicely with the X86 parts. Thankfully, the majority of Android applications are not native applications, and therefore run on X86 just dandy."...

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So is x86 dead? Time will tell. But know this. Intel is covering its bases in the Tablet application chip industry. Windows, Android and potentially Apple will all be working w/ Intel for its tablet chips. To Apple's benefit, Samsung is being marginalized (as Apple's DRAM supplier) by resurrecting a mobile DRAM competitor with the help of INTC. And once 2014 starts rolling along, it wouldn't surprise me that INTC will have a chunk of the mobile SoC market, w/ its LTE modem coming out late 2013/early 2014, to compete head on w/ Qualcomm...... I can't predict where INTC's stock price will go. I do think we've seen a bottom of $19.50 - $20.50. If INTC is to be believed that their once idle foundries are now at 90% capacity (the highest 'comfort' capacity level INTC wants), I believe some good news is on the way for Intel....